TSX:BPO.PR.A - Post by User
Comment by
pierrelebelon Jun 05, 2024 12:04pm
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Post# 36073372
RE:RE:Lower Interest Rate Anticipation in Canada
RE:RE:Lower Interest Rate Anticipation in Canada
Good morning SONOFFERGUS.
"Huge move. "
Yes it has been a HUGE move in Canada 5 year bond yield - from 3.81% last Thursday morning (May 30) to 3.41% this morning. More than most expected.
".... by the end of the year, where will GoC5 be?"
As stated a few months ago when trying to anticipate the value of "A" vs "T", I still project a Canada 5 year rate of 3.00% to 3.25% by December 2024. On that basis, as I tried to explain to Crazy, it made no sense to me to speculate (gamble) and buy "A" instead of "T" (11.3% yield for the next five years).
I am now looking at BPO.PR.C which resets two years from now (July 2026). I may, over time based on market conditions, reduce our holdings of "T" and replace them with "C". No rush to move on that, it is just an interesting possibility.